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Thursday 12 September, 2002


Final Results

Quester VCT 5 plc

Financial highlights

42 weeks ended 30 June 2002                                                    
Revenue return per share (pence)                                           0.04
Total return per share (pence)                                           (0.40)
Shareholders' funds (£'000)                                              17,556
Net asset value per share (pence)                                          94.8
Mid-market price per share (pence)                                         93.0

Highlights from the Chairman's statement and Investment Manager's report

  * Positive rate of investment on the back of a steady deal flow
  * Currently depressed markets offer a good opportunity to make investments at
    relatively low prices
  * Good progress made towards constructing a well-balanced portfolio which has
    the potential to achieve attractive returns. Sectors include:
  * Computer software
  * Energy
  * Industrial products and services
  * Healthcare and life sciences
  * Communications


The offers for subscription for shares in Quester VCT 5 were closed on 31 May
2002 having raised gross funds of £18.6 million. This has allowed the Company
to start to build its venture capital portfolio. There has been a positive rate
of investment to date.


As at 30 June 2002, three investments had been made at an average cost of
approximately £300,000. The currently depressed markets offer a good
opportunity for the Company to start to make investments at relatively low
initial prices, which potentially improves the future returns to shareholders.
Further information on the Company's investments is provided in the Investment
Manager's report.

Subsequent to the period end, a further four investments have been made taking
the total amount invested, including reserves for follow-on investments, to
approximately £3.3 million, or approximately 19% of net funds raised.


As at 30 June 2002, the net asset value was 94.8 pence per share. This compares
to the initial net assets of 95.0 pence after providing for launch costs, which
were capped at 5% of gross funds raised. At this early stage in the Company's
life, there have not been any material changes to the value of the venture
capital portfolio, which remains valued at cost.


At the period end, distributable reserves of £5,000 had been retained, which is
approximately equivalent to a total return for the period of 0.04 pence per
share. As indicated in the prospectus, the Company will not be paying an
interim dividend. However, it is possible that a small final dividend may be

In line with the indication given in the prospectus and following Court
approval, the share premium account was cancelled on 14 August 2002.


The Company proposes to seek to raise further funds which would enable it to
achieve a more diversified investment portfolio. It is planned to issue a
prospectus and application forms in respect of further offers for subscription
in the early Autumn. Existing shareholders will be given priority at the start
of the application process.


The Company has started to build a portfolio of investments in a range of
sectors with the potential to deliver attractive growth over the longer term.
With a steady flow of investment proposals, the prospects for continuing to
build this portfolio remain good.

WW Passmore


12 September 2002



We have begun to build the Company's venture capital portfolio slowly and
cautiously, with the first investment being made in May 2002. We intend to
structure steadily a diversified portfolio of investments designed to deliver
an attractive return to shareholders.

We are making investment judgements about the potential of young companies,
which plan to build their businesses over the medium to longer term, three to
five years and beyond. Many business plans are being substantially adjusted or
slowed to accommodate the current subdued business climate. Our challenge is to
look beyond these current conditions and balance scepticism against the
positive fact that successful management teams, who capitalise effectively on
innovation and technology change, will deliver attractive returns over the
longer term.


During the period to 30 June 2002, three venture capital investments were made
at an aggregate cost of £888,000. We have subsequently made a further four
investments as at the date of this report, increasing the amount invested to £
2.0 million at an average of approximately £300,000 per investment. In the
majority of cases we expect to invest further amounts in these portfolio
companies beyond the initial investment, depending on progress against plan of
the company concerned. We therefore carry notional reserves to cover this
further investment.

The seven investments completed to date have already created a degree of
diversification within the portfolio. The sectors covered include computer
software, energy, industrial products and services, healthcare and life
sciences and communications. This is consistent with the objective of building
a broad portfolio as stated in the prospectus.

Given the current level of funding, we anticipate making around 20 investments
and so are now approaching a third of the way towards achieving our initial


The venture capital investments are currently held at cost, primarily
reflecting the fact that they are recent investments. The Company's basis for
valuing investments derives from the guidelines issued by the British Venture
Capital Association.


It is intended that up to 15% of the funds raised from the launch are to be
invested in equities quoted on a recognised stock exchange. This portfolio is
managed by Newton Investment Management Limited. Newton have made a cautious
start, on account of the current uncertainty surrounding global stock markets,
and have invested approximately 20% of the funds earmarked for this portfolio.

Funds awaiting investment in venture capital opportunities or listed equities
are largely invested in short dated fixed interest securities. This portfolio,
which is also managed by Newton, will reduce over time as the funds are
switched into venture capital opportunities.


A steady rate of investment has been achieved during the period and
subsequently. We believe that we have made good progress towards constructing a
well balanced portfolio which has the potential to achieve attractive returns.
We are optimistic about the future prospects for these investments, although it
should be stressed that at this very early stage none of the companies have yet
achieved financial results which demonstrate this potential.

Quester Capital Management Limited


12 September 2002

Fund summary

As at 30 June 2002

                                                   Cost   Valuation   % of fund
                                                  £'000       £'000    by value
Unquoted venture capital investments                                           
Bowman Power Limited                                400         400        2.3%
Footfall Limited                                    400         400        2.3%
Azea Limited                                         88          88        0.5%
Total venture capital investments                   888         888        5.1%
Listed fixed interest investments                11,229      11,242       64.0%
Listed equity investments                           578         561        3.2%
Total investments                                12,695      12,691       72.3%
Cash and other net assets                         4,865       4,865       27.7%
Net assets                                       17,560      17,556      100.0%

                        UNAUDITED FINANCIAL STATEMENTS                         

Statement of Total Return

Incorporating the revenue account of the Company

                                                   42 weeks ended 30 June 2002
                                      Note     Revenue     Capital       Total
                                                 £'000       £'000       £'000
Losses on investments                                -        (17)        (17)
Income                                             184           -         184
Investment management fee                         (30)        (30)        (60)
Other expenses                                   (149)           -       (149)
Return/(loss) on ordinary                            5        (47)        (42)
activities before taxation                                                    
Tax on ordinary activities                           -           -           -
Return/(loss) on ordinary                            5        (47)        (42)
activities after taxation                                                     
Dividend proposed                                    -           -           -
Transfer to/(from) reserves                          5        (47)        (42)
Return per share                         3       0.04p     (0.44)p     (0.40)p

The revenue column of this statement is the profit and loss account of the

All revenue and capital items in the above statement derive from continuing

The Company has only one class of business and derives its income from
investments made in shares and securities and from bank deposits.

Balance sheet

                                                     Note               30 June
Fixed assets                                                                   
Investments                                                              12,691
Current assets                                                                 
Debtors                                                                     480
Cash at bank and in hand                                                  5,924
Creditors: amounts falling due within one year                          (1,493)
Other creditors                                                                
Net current assets                                                        4,911
Creditors: amounts falling due in over one year                            (46)
Loan stock                                                                     
Net assets                                                               17,556
Capital and reserves                                                           
Called up equity share capital                                              185
Share premium account                                 1                  17,413
Capital reserve - realised                            1                    (43)
- unrealised                                          1                     (4)
Revenue reserve                                       1                       5
Total equity shareholders' funds                                         17,556
Net asset value per share                                                 94.8p

Summarised Cashflow Statement

                                                                 42 weeks ended
                                                                   30 June 2002
Net cash outflow from operating activities                                (264)
Net capital expenditure and financial investment                       (11,410)
Financing                                                                17,598
Increase in cash for the period                                           5,924
Reconciliation of net cashflow to movement in net funds                        
Increase in cash for the period                                           5,924
Net funds at the start of the period                                          -
Net funds at the end of the period                                        5,924

Notes to the unaudited financial statements

1. Movement in reserves

                                       Share    Capital      Capital    Revenue
                                     premium    reserve      reserve    reserve
                                     account   realised   unrealised           
                                       £'000      £'000        £'000           
Shares issued                         18,375          -            -          -
Expenses of share issues               (925)          -            -          -
Share buy back and cancellation         (37)          -            -          -
Net loss on realisation of                 -       (13)            -          -
Net unrealised loss on                     -          -          (4)          -
of investments                                                                 
Investment management fee                  -       (30)            -          -
charged to capital                                                             
Net revenue retained for the               -          -            -          5
At 30 June 2002                       17,413       (43)          (4)          5

 2. The financial information contained in this report has been prepared on the
    basis of the accounting policies adopted by the Company and covers the
    period from 6 September 2001, the date of incorporation, to 30 June 2002.
 3. The calculation of the revenue, capital and total return per share for the
    period is based on the respective profit or loss after tax and on the
    weighted average number of shares in issue during the period of 10,587,796.
 4. The unaudited financial statements set out above do not constitute
    statutory accounts within the meaning of Section 240 of the Companies Act
 5. Copies of the unaudited interim results are expected to be sent to
    shareholders on 16 September 2002. Further copies can be obtained from the
    Company's registered office.